Revenue collection in 2021-22 less by 23 pc than estimates due to COVID-19: Sisodia

Delhi Deputy Chief Minister Manish Sisodia on Wednesday said the city government has earned 23 per cent less revenue than estimates in the current financial year, 2021-22, because of closure of economic activities due to coronavirus and lockdown.

Delhi Deputy Chief Minister Manish Sisodia on Wednesday said the city government has earned 23 per cent less revenue than estimates in the current financial year, 2021-22, because of closure of economic activities due to coronavirus and lockdown. The deputy CM also said that the Aam Aadmi Party-led Delhi government received 41 per cent less revenue than estimates last year (2020-21) due to the COVID-19 pandemic.

Sisodia said that fiscal years 2020-21 and 2021-22 have been highly affected by COVID-19 from the perspective of revenue. ''In 2020-21, last year, we received revenues 41 per cent less than our budget estimates. If we look at the number of 2021-22, we are 23 per cent below the budget estimates. Our revenue collection is 23 per cent less than our budget estimates. It is a very concerning situation. The government is withholding most of the expenses for now, except salaries and COVID-related expenses,'' Sisodia said. He said that due to the coronavirus-induced lockdown, economic activities are less so tax collection is low. ''Under value added tax (VAT), the government earned 25 per cent less revenue in the current fiscal, while in excise it collected 30 per cent less revenue,'' the minister said in a press conference.

He said that such state of affairs is because of COVID-19 as economic activities are low and consequently the tax collection is low. ''So, overall, our tax collection is low by 23 per cent. In this, the GST collection compared to what it should have been by now is 23 per cent less. VAT collection is 25 per cent less. Excise collection is 30 per cent less, Stamp Duty collection is 16 per cent less and Motor Vehicle Tax collection is 19 per cent less,'' Sisodia said in a statement which was issued later. He said that coming time will be even tougher as throughout the country, state governments will not get GST compensations from next year.

It will be tough for all state governments, but even more tough for the Delhi government because the city doesn't receive any help from the Centre, Sisodia said.

He said that the Delhi government does not get the 42 per cent share from Central Tax Collection via the Finance Commission of the central government. ''This 42 per cent is given to the rest of the states, but not Delhi. For the past 20 years, Delhi gets a grant of Rs 325 crore from the central government, while the city's people pay a tax of approximately Rs 1.40 lakh crore through the central tax,'' the deputy CM added. Sisodia, however, said that there was a silver lining as the government was expected to gain Rs 10,000 crore revenue from bidding of liquor shops under the new excise policy. He said that the government has received nearly 225 bids for 32 zones of the city.

''This will be around Rs 3,500 crore extra revenue from what we got in 2019-20. In financial year 2019-20, the government had collected a revenue of Rs 6,300 crore from bidding of liquor shops,'' Sisodia said.

He said the extra revenue is a result of reforms in the excise policy as earlier such revenue was stolen.